AUD/FJD Outlook:
The AUD/FJD rate is likely to increase as it is currently above its recent average and near recent highs. Key factors are positively influencing the Australian dollar, supporting its strength.
Key drivers:
• Rate gap: The Reserve Bank of Australia has recently raised interest rates, increasing the appeal of the AUD compared to the Fijian dollar, which has maintained a low rate.
• Risk/commodities: Rising global commodity prices, especially gold, are benefiting Australia, which relies heavily on its exports, thereby supporting the AUD.
• Economic growth: Improved manufacturing activity in China is boosting demand for Australian exports, contributing to a stronger AUD.
Range:
The AUD/FJD is likely to drift higher within its recent range, testing towards the upper limits as the demand for the AUD increases.
What could change it:
• Upside risk: A further surprise interest rate hike from the RBA could propel the AUD even higher.
• Downside risk: Escalating global trade tensions could negatively impact Australian exports, weighing on the AUD.